Economy and the Animal Industry

A couple of blogs back I talked about how the current state of the economy was affecting many different things like interest rates, the housing market, gas prices, etc. But how exactly is it affecting the animal industry?

Since people are tight with money right now, one major idea that they are succeeding in is preparing and sticking to a budget. People are watching what they spend and this means cutting back on some of the luxuries like new toys, collars, grooming, and even vet visits for their pet. True, vet visits shouldn't be a luxury but when it comes to either paying the electric bill or getting fluffy his shots, people are choosing electric. One suggestion on about.com to cope with the high cost economy right now says to cut out what you don't need in the budget. It talks about getting too many hair cuts and losing the gym membership. But for people that don't have any extra payments beside their pet, they are cutting their pet out of the budget.

The APPA (American Pet Products Association) is even commenting on the impact on the pet industry due to the recent economy. It says because of gas prices, people are not running out every time they need an item or two. They are taking trips in one load at one store. So for people to stop by a pet store, they will have to have a whole list of items that they need. However, the website goes on to say, that because shopping at pet stores has gone down, different stores like convenience and grocery stores are now carrying more pet products which forces the pet stores to compete with their prices. According to Bob Vetere at the APPA blog website, he is confident that even though the pet industry will change, it will continue to strive in today's economy because Americans do feel that pets are a part of the family.

Only time will be able to tell which way the economy is going to take the pet industry. Some people might choose to space out groomings and skip a year of vaccinations because it is needed to pay the bills or some people might be able to fit their pet into their budget and cut out something else. Either way, the current state of the economy is changing the animal industry in a way that could be permanent.

Websites:
http://moneyfor20s.about.com/od/budgeting/a/inflationbudget.htm
http://appma.typepad.com/pet_industry_insight/2008/05/pet-industry-in.html